Cosco Corporation (Singapore) Limited, offshore marine engineering, shipbuilding, ship repair & conversion and dry bulk shipping group, has posted a net profit of SGD4.25 million (USD3.19 million), down 82% year-on-year for the first quarter that ended 31 March 2015.
The Singapore-listed Chinese shipbuilding and dry bulk shipping group's turnover decreased 4.6% to $991.2 million in Q1 2015 from $1.04 billion owing to falls in shipyard and dry bulk shipping revenues.
The company's revenue from its shipyard operations segment decreased by 4.7% y/y to SGD980.8 million in 1Q15 from SGD1.03 billion in 1Q14, owing to lower revenue contribution from marine engineering and ship repair. This was partially offset by an increase in revenue from shipbuilding.
Turnover from dry bulk shipping and other businesses decreased 11.9% from $11.8 million in Q1 2014 to $10.4 million in Q1 2015 on decreased charter rates.
Gross profit fell 23.7% from $95.7 million in Q1 2014 to $73.0 million in Q1 2015 due to lower profit contributions from dry bulk shipping and shipyard operations.
In 1Q15, Cosco Group delivered
11 ships, including four bulk carriers and one platform supply vessel from COSCO Zhoushan shipyard. COSCO Guangdong shipyard delivered one bulk carrier and two platform supply vessels.
In the meantime, COSCO Dalian delivered one oil tanker, while COSCO Nantong shipyard delivered one semi-submersible accommodation vessel and one floating accommodation unit. As at 31 March 2015, Cosco Corp's order
book stood at USD8.1 billion with progressive deliveries up to 2017.
Amidst weakness in the state of the global economy, the Group expects difficult and challenging business and operating conditions to persist in 2015.